Account Receivable (ARC) and Back Office Conversion (BOC) Check Conversion is where a check received in the mail for payment of an invoice or outstanding debt or received form a payer in person wherein, upon receipt, the check is being converted from a paper item (Original Source Document) to an electronic item (ACH Debit).
In support of both ARC and BOC, the original paper check or “Source Document” is the authorization in itself and should be retained as such.
In order to initiate a complaint ARC and/or BOC entry, the MICR Line (Magnetic Ink Characters) MUST be read electronically by a reading device (MICR Reader) and not key entered unless to correct an inaccurate MICR read.
Additionally, in order for the paper check to qualify as the Source Document, the following notice must be presented either on the invoice or mailed document from which the payment is solicited or posted as a sign where the check is physically tendered:
“When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. For inquiries please contact us at (Phone Number) or email us at (Email Address).”
Please be advised that the information and recommendations in regard to best practices offered herein are not to be construed as legal advice or guidance. ACH Processor does not warrant that this information is free from inaccuracies, omissions or inconsistencies or is always current. ACH Processor accepts no responsibility or liability in regard to the utilization of this information. It is recommended that you, as an entity accepting electronic payments, consult legal counsel as appropriate in regard to the development of your business policies and practices or the preparation of materials, information or disclosures which you may provide to customers or others in support of your payment acceptance process.
